Comments on the Price Gouging
Washington,
May 23, 2007
Tags:
Energy and Environment
Video from the floor
I have grave concerns about the Stupak bill, specifically regarding its lack of clarity in defining "unconscionable." I believe that this ambiguous term could lead to severe supply shortages in a time of emergency. Under this proposal, a gasoline station owner could receive civil and criminal penalties totaling $5 million and ten years in prison for charging "unconscionable" prices. Yet there is no clear definition for "unconscionable." To add insult to injury, if a gas station were to charge less than the market price, it could also be subject to charges of undercutting the market. If I were a gasoline station owner in a time of crisis, I would probably shut down my pumps and just sell coca-cola and snicker bars to try to make a living. I'm not defending those who would price gouge. I firmly believe that if it is determined that illegal pricing has occurred, it should be prosecuted to the fullest extent of the law. In my home state of Texas, we already have tough anti-price gouging laws on the books. After the Governor declares an emergency, the Texas Attorney General can file suit. Anyone convicted of price gouging faces civil penalties of from $10,000 to a maximum of $100,000 per violation. But we must make sure that we do not create a climate which causes business owners to stop selling gasoline rather than face losing their businesses -- and their livelihood. |
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